Silver markets rallied significantly during the trading session on Wednesday, showing the $16 level to be supportive. By the market staying above that level, it suggests that we should continue to see sellers jump in. If we can break above the $16.60 level, the market continues to go much higher and to the $17 level above. I believe that the market should continue to see a bit of a floor underneath, and I think that the longer-term attitude of this market continues to be one of the consolidation, meaning that the market should continue to go higher eventually. Tomorrow, we get the jobs number coming out of the United States which of course has a major influence on the US dollar, which of course has a major influence over here.
As I record this, the FOMC statement comes out a bit later, and that of course will give us an idea as to where the central bank is getting ready to go. The problem with this type of statement is that the market needs to guess as to what is truly going to happen, as there is folly in trying to read someone else’s mind. However, I do have a couple of technical levels that I am paying attention to. The $16 level underneath is the “floor” in the market that extends down to the $15.50 level, based upon the last couple of years. Alternately, if we can break above the $16.60 level, then I think we go much higher, but I’m not convinced that we break out of this consolidation area going back months anytime soon.